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Hertz Global Holdings, Inc Common Stock (HTZ) — WACC Analysis

WACC Breakdown

Hertz Global Holdings, Inc Common Stock (HTZ) has a weighted average cost of capital (WACC) of 6.0%. The cost of equity is 10.1%, derived from a beta of 1.34 and a risk-free rate of 5.0%. The after-tax cost of debt is 5.9%. The capital structure is 3.7% equity and 96.3% debt.

Interpretation

A WACC of 6.0% suggests that the market views Hertz Global Holdings, Inc Common Stock as relatively low-risk, with a lower cost of financing.

Investors can compare HTZ's WACC of 6.0% against industry peers to gauge its relative financing costs. A beta of 1.34 reflects the stock's volatility relative to the broader market.

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VALUATION

HTZ WACC: 6.02% for Hertz Global Holdings, Inc Common Stock

Current inputs imply a 10.15% cost of equity and a 5.86% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Hertz Global Holdings, Inc Common Stock Common Stock (HTZ) WACC Results
Weighted Average Cost of Capital
6.02%
Cost of Equity
10.15%
Risk-Free Rate4.96%
Beta1.34
Market Risk Premium4.23%
Cost of Debt
5.86%
Pre-Tax Cost of Debt5.86%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 3.72%($702.21M)
Debt: 96.28%($18.20B)
Equity Component
0.38%
3.72% × 10.15%
Debt Component
5.64%
96.28% × 5.86%

Hertz Global Holdings, Inc Common Stock (HTZ) WACC in context

Hertz Global Holdings, Inc Common Stock (HTZ) currently screens with an estimated WACC of 6.02%. That blends a 10.15% cost of equity, a 5.86% pre-tax cost of debt, and a 3.72% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What HTZ WACC implies

A 6.02% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates HTZ

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.34 and equity accounts for 3.72% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.